FTP - Clear Debt or Buy Now???

buyahousein2010

Hello All,

My GF and I are looking to purchase a new house this year and I would appreciate some advice. She is a Teacher and I work in IT, our combined take home income is 72k/year. I also earn commission on top of this that I have not factored in.

Currently we have 16,000 GBP saved in a mixture of eISAs and eSavings accounts between the two of us.

My GF has Car Finance at 150.00/GBP a month and no other loans or c/c’s
I have 4,000 GBP left on a personal loan which I pay back at 350.00 GBP/Month so about a year outstanding.
I also have 3,000 GBP on a 0% C/C balance with 12 months remaining at that rate.

Through commission I am going to have an extra 6,000 GBP come in over the next two months. Our parents are also willing to lend us 5,000 GBP.

So my question is, do we top up our savings to 28,000 GBP and look to buy a house straight away – probably at the 250k mark.

Or do I clear my outstanding credit with the money?

To be honest, we have seen a couple of houses we like and we really want to put an offer on one of them but the outstanding debt is on the back of my mind.
We both have very good credit histories.

Thanks in advance for any advice.

mikey_D

The best bet is to speak to a Mortgage advisor, they will take you through an afforadability calculatorm whic asks you to put a monthly budget against all your yearly outgoings ie car insurance, clothes, presents etc. If at the end there is a suprlus, when you have included all your outgoings, you should be ok. On the otherhand, for your own piece of mind if you are worried about managing all your debt, you could pay it off now and then pay the money you would have been using for the debts into savings.